3. Hazlitt addresses fallacies in their popular form, not their academic form. Can Hazlitt do this and be fair to the theories in
their more sophisticated forms? What does Hazlitt’s view say about the relationship between academics and popular culture?

4. In his preface, Hazlitt discusses his use of statistics. Likewise, in Chapter VII, he writes [page 54], “Statistics and history are
useless in economics unless accompanied by a basic deductive understanding of the facts.” What is Hazlitt’s basic view of the use and status of statistics?

** Chapter I: The Lesson **

5. Why is economics especially beset by fallacies?

6. What does Hazlitt mean by the “special pleading of selfish interests,” and what is the result of such pleading?

7. Is it true that “certain public policies would in the long run benefit everybody?”

8. What is Hazlitt’s “One Lesson?”

9. Is Hazlitt’s “One Lesson” really adequate for understanding the essence of economics?

10. What are modern examples of “brilliant economists, who deprecate saving and recommend squandering on an national scale as the way of economic salvation?”

11. Hazlitt warns against the error “of looking at the consequences only for a particular group to the neglect of other groups.” Is it possible to justly “balance” the interests of groups? Does Hazlitt’s view depend on a utilitarian framework?

12. Hazlitt also warns against “a certain callousness toward the fate of groups that were immediately hurt by policies.” What does this suggest in terms of transitioning from political controls to free markets?

13. While demagogues get by with snappy “half-truths,” good economics “often requires a long, complicated, and dull chain of reasoning.” Does this ultimately imply a pessimistic view? Is there a solution to the problem?

** Chapter II: The Broken Window **

14. What are some modern examples of the “broken window” fallacy at work?

15. What is the problem of the seen and the unseen? (See also Chapter V.)

** Chapter III: The Blessings of Destruction **

16. Is there such a thing as “accumulated” or “pent-up” demand?

17. What is the difference, in economic terms, between need and demand?

18. What is the “money illusion” or the “monetary veil,” and how does this relate to wage levels?

19. What does Hazlitt mean when he says that supply equals demand?

20. What is the “optimal rate of replacement” of capital goods mean?

** Chapter IV: Public Works Mean Taxes **

21. Where does political spending come from?

22. What public works projects does Hazlitt consider “essential?” (See also Chapter IX.) Without entering a long debate over the matter, what are the other basic schools of thought on this issue?

** Chapter V: Taxes Discourage Production **

23. What is the effect of taxes on incentives?

** Credit Diverts Production **

24. What is credit?

25. What is the result of politically favoring one party with credit?

26. Hazlitt criticizes the view that some credit risks are “too great for private industry.” Is his criticism always warranted?

27. Hazlitt uses the example of “government-guaranteed home mortgages.” How do his comments line up with recent events?

28. Hazlitt leaves open the possibility of government loans “under certain emergency circumstances.” Is he right about this, and, if so, what are those circumstances?

** Chapter VII: The Curse of Machinery **

29. What are some of the major examples Hazlitt uses of machinery displacing certain workers?

30. Is “industrial overproduction” a real problem?

31. Is there an upper limit to the number of jobs available?

32. What is the long-term impact of technological advances on employment? On standard of living?

** Chapter VIII: Spread-The-Work Schemes **

33. What are some examples of make-work schemes from Hazlitt and modern policy?

34. Is there any context in which make-work is appropriate?

** Chapter IX: Disbanding Troops and Bureaucrats **

35. What is the cost of providing employment to soldiers and bureaucrats?